1.1.................... moves to amend H.F. No. 2077 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 273.1384, is amended by adding a
1.4subdivision to read:
1.5    Subd. 6. Credit reduction. In 2011 and each year thereafter, the market value
1.6credit reimbursement amount for each taxing jurisdiction determined under this section
1.7is reduced by the dollar amount of the reduction in market value credit reimbursements
1.8for that taxing jurisdiction in 2010 due to unallotment reductions under section 16A.152.
1.9No taxing jurisdiction's market value credit reimbursements are reduced to less than zero
1.10under this subdivision. The commissioner of revenue shall pay the annual market value
1.11credit reimbursement amounts, after reduction under this subdivision, to the affected
1.12taxing jurisdictions as provided in this section.
1.13EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
1.14thereafter.

1.15    Sec. 2. Minnesota Statutes 2009 Supplement, section 275.70, subdivision 5, is
1.16amended to read:
1.17    Subd. 5. Special levies. "Special levies" means those portions of ad valorem taxes
1.18levied by a local governmental unit for the following purposes or in the following manner:
1.19    (1) to pay the costs of the principal and interest on bonded indebtedness or to
1.20reimburse for the amount of liquor store revenues used to pay the principal and interest
1.21due on municipal liquor store bonds in the year preceding the year for which the levy
1.22limit is calculated;
1.23    (2) to pay the costs of principal and interest on certificates of indebtedness issued for
1.24any corporate purpose except for the following:
1.25    (i) tax anticipation or aid anticipation certificates of indebtedness;
2.1    (ii) certificates of indebtedness issued under sections 298.28 and 298.282;
2.2    (iii) certificates of indebtedness used to fund current expenses or to pay the costs of
2.3extraordinary expenditures that result from a public emergency; or
2.4    (iv) certificates of indebtedness used to fund an insufficiency in tax receipts or
2.5an insufficiency in other revenue sources;
2.6    (3) to provide for the bonded indebtedness portion of payments made to another
2.7political subdivision of the state of Minnesota;
2.8    (4) to fund payments made to the Minnesota State Armory Building Commission
2.9under section 193.145, subdivision 2, to retire the principal and interest on armory
2.10construction bonds;
2.11    (5) property taxes approved by voters which are levied against the referendum
2.12market value as provided under section 275.61;
2.13    (6) to fund matching requirements needed to qualify for federal or state grants or
2.14programs to the extent that either (i) the matching requirement exceeds the matching
2.15requirement in calendar year 2001, or (ii) it is a new matching requirement that did not
2.16exist prior to 2002;
2.17    (7) to pay the expenses reasonably and necessarily incurred in preparing for or
2.18repairing the effects of natural disaster including the occurrence or threat of widespread
2.19or severe damage, injury, or loss of life or property resulting from natural causes, in
2.20accordance with standards formulated by the Emergency Services Division of the state
2.21Department of Public Safety, as allowed by the commissioner of revenue under section
2.22275.74, subdivision 2 ;
2.23    (8) pay amounts required to correct an error in the levy certified to the county
2.24auditor by a city or county in a levy year, but only to the extent that when added to the
2.25preceding year's levy it is not in excess of an applicable statutory, special law or charter
2.26limitation, or the limitation imposed on the governmental subdivision by sections 275.70
2.27to 275.74 in the preceding levy year;
2.28    (9) to pay an abatement under section 469.1815;
2.29    (10) to pay any costs attributable to increases in the employer contribution rates
2.30under chapter 353, or locally administered pension plans, that are effective after June
2.3130, 2001;
2.32    (11) to pay the operating or maintenance costs of a county jail as authorized in
2.33section 641.01 or 641.262, or of a correctional facility as defined in section 241.021,
2.34subdivision 1 , paragraph (f), to the extent that the county can demonstrate to the
2.35commissioner of revenue that the amount has been included in the county budget as
2.36a direct result of a rule, minimum requirement, minimum standard, or directive of the
3.1Department of Corrections, or to pay the operating or maintenance costs of a regional jail
3.2as authorized in section 641.262. For purposes of this clause, a district court order is
3.3not a rule, minimum requirement, minimum standard, or directive of the Department of
3.4Corrections. If the county utilizes this special levy, except to pay operating or maintenance
3.5costs of a new regional jail facility under sections 641.262 to 641.264 which will not
3.6replace an existing jail facility, any amount levied by the county in the previous levy year
3.7for the purposes specified under this clause and included in the county's previous year's
3.8levy limitation computed under section 275.71, shall be deducted from the levy limit
3.9base under section 275.71, subdivision 2, when determining the county's current year
3.10levy limitation. The county shall provide the necessary information to the commissioner
3.11of revenue for making this determination;
3.12    (12) to pay for operation of a lake improvement district, as authorized under section
3.13103B.555 . If the county utilizes this special levy, any amount levied by the county in the
3.14previous levy year for the purposes specified under this clause and included in the county's
3.15previous year's levy limitation computed under section 275.71 shall be deducted from
3.16the levy limit base under section 275.71, subdivision 2, when determining the county's
3.17current year levy limitation. The county shall provide the necessary information to the
3.18commissioner of revenue for making this determination;
3.19    (13) to repay a state or federal loan used to fund the direct or indirect required
3.20spending by the local government due to a state or federal transportation project or other
3.21state or federal capital project. This authority may only be used if the project is not a
3.22local government initiative;
3.23    (14) to pay for court administration costs as required under section 273.1398,
3.24subdivision 4b , less the (i) county's share of transferred fines and fees collected by the
3.25district courts in the county for calendar year 2001 and (ii) the aid amount certified to be
3.26paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes
3.27levied to pay for these costs in the year in which the court financing is transferred to the
3.28state, the amount under this clause is limited to the amount of aid the county is certified to
3.29receive under section 273.1398, subdivision 4a;
3.30    (15) to fund a police or firefighters relief association as required under section 69.77
3.31to the extent that the required amount exceeds the amount levied for this purpose in 2001;
3.32    (16) for purposes of a storm sewer improvement district under section 444.20;
3.33    (17) to pay for the maintenance and support of a city or county society for the
3.34prevention of cruelty to animals under section 343.11, but not to exceed in any year
3.35$4,800 or the sum of $1 per capita based on the county's or city's population as of the most
3.36recent federal census, whichever is greater. If the city or county uses this special levy, any
4.1amount levied by the city or county in the previous levy year for the purposes specified
4.2in this clause and included in the city's or county's previous year's levy limit computed
4.3under section 275.71, must be deducted from the levy limit base under section 275.71,
4.4subdivision 2 , in determining the city's or county's current year levy limit;
4.5    (18) for counties, to pay for the increase in their share of health and human service
4.6costs caused by reductions in federal health and human services grants effective after
4.7September 30, 2007;
4.8    (19) for a city, for the costs reasonably and necessarily incurred for securing,
4.9maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by
4.10the commissioner of revenue under section 275.74, subdivision 2. A city must have either
4.11(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in
4.12the city or in a zip code area of the city that is at least 50 percent higher than the average
4.13foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2,
4.14to use this special levy. For purposes of this paragraph, "foreclosure rate" means the
4.15number of foreclosures, as indicated by sheriff sales records, divided by the number of
4.16households in the city in 2007;
4.17    (20) for a city, for the unreimbursed costs of redeployed traffic-control agents and
4.18lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified
4.19to the Federal Highway Administration;
4.20    (21) to pay costs attributable to wages and benefits for sheriff, police, and fire
4.21personnel. If a local governmental unit did not use this special levy in the previous year its
4.22levy limit base under section 275.71 shall be reduced by the amount equal to the amount it
4.23levied for the purposes specified in this clause in the previous year;
4.24    (22) an amount equal to any reductions in the certified aids or credits payable
4.25under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment under
4.26section 16A.152 or reductions under another provision of law. The amount of the levy
4.27allowed under this clause is equal to the amount unallotted or reduced in the calendar year
4.28in which the tax is levied unless the unallotment or reduction amount is not known by
4.29September 1 of the levy year, and the local government has not adjusted its levy under
4.30section 275.065, subdivision 6, or 275.07, subdivision 6, in which case the unallotment
4.31or reduction amount may be levied in the following year;
4.32(23) to pay for the difference between one-half of the costs of confining sex offenders
4.33undergoing the civil commitment process and any state payments for this purpose pursuant
4.34to section 253B.185, subdivision 5;
4.35(24) for a county to pay the costs of the first year of maintaining and operating a new
4.36facility or new expansion, either of which contains courts, corrections, dispatch, criminal
5.1investigation labs, or other public safety facilities and for which all or a portion of the
5.2funding for the site acquisition, building design, site preparation, construction, and related
5.3equipment was issued or authorized prior to the imposition of levy limits in 2008. The
5.4levy limit base shall then be increased by an amount equal to the new facility's first full
5.5year's operating costs as described in this clause; and
5.6(25) for the estimated amount of reduction to credits market value credit
5.7reimbursements under section 273.1384 for credits payable in the year in which the levy is
5.8payable.
5.9EFFECTIVE DATE.This section is effective for taxes payable in 2011 and
5.10thereafter.

5.11    Sec. 3. Minnesota Statutes 2008, section 477A.013, subdivision 9, is amended to read:
5.12    Subd. 9. City aid distribution. (a) In calendar year 2009 and thereafter, each
5.13city shall receive an aid distribution equal to the sum of (1) the city formula aid under
5.14subdivision 8, and (2) its city aid base.
5.15    (b) For aids payable in 2009 2010 only, the total aid for any city shall not exceed the
5.16sum of (1) 35 percent of the city's net levy for the year prior to the aid distribution, plus (2)
5.17its total aid in the previous year mean the amount of aid it was certified to receive for aids
5.18payable in 2010 under this section minus the amount of its aid reduction under section
5.19477A.0133. For aids payable in 2011 and thereafter, the total aid for any city means the
5.20amount of aid it was certified to receive under this section in the previous payable year.
5.21    (c) For aids payable in 2010 and thereafter, the total aid for any city shall not exceed
5.22the sum of (1) ten percent of the city's net levy for the year prior to the aid distribution
5.23plus (2) its total aid in the previous year. For aids payable in 2009 and thereafter, the total
5.24aid for any city with a population of 2,500 or more may not be less than its total aid under
5.25this section in the previous year minus the lesser of $10 multiplied by its population, or ten
5.26percent of its net levy in the year prior to the aid distribution.
5.27    (d) For aids payable in 2010 and thereafter, the total aid for a city with a population
5.28less than 2,500 must not be less than the amount it was certified to receive in the
5.29previous year minus the lesser of $10 multiplied by its population, or five percent of its
5.302003 certified aid amount. For aids payable in 2009 only, the total aid for a city with a
5.31population less than 2,500 must not be less than what it received under this section in the
5.32previous year unless its total aid in calendar year 2008 was aid under section 477A.011,
5.33subdivision 36, paragraph (s), in which case its minimum aid is zero.
5.34    (e) A city's aid loss under this section may not exceed $300,000 in any year in
5.35which the total city aid appropriation under section 477A.03, subdivision 2a, is equal or
6.1greater than the appropriation under that subdivision in the previous year, unless the
6.2city has an adjustment in its city net tax capacity under the process described in section
6.3469.174, subdivision 28 .
6.4    (f) If a city's net tax capacity used in calculating aid under this section has decreased
6.5in any year by more than 25 percent from its net tax capacity in the previous year due to
6.6property becoming tax-exempt Indian land, the city's maximum allowed aid increase
6.7under paragraph (c) shall be increased by an amount equal to (1) the city's tax rate in the
6.8year of the aid calculation, multiplied by (2) the amount of its net tax capacity decrease
6.9resulting from the property becoming tax exempt.
6.10EFFECTIVE DATE.This section is effective for aids payable in calendar year
6.112011 and thereafter.

6.12    Sec. 4. [477A.0133] ADDITIONAL 2010 AID AND CREDIT REDUCTIONS.
6.13    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
6.14have the meanings given them in this subdivision.
6.15(b) The "2010 revenue base" for a county is the sum of the county's certified property
6.16tax levy for taxes payable in 2010, plus the amount of county program aid under section
6.17477A.0124 that the county was certified to receive in 2010, plus the amount of taconite
6.18aids under sections 298.28 and 298.282 that the county was certified to receive in 2010
6.19including any amounts required to be placed in a special fund for distribution in a later year.
6.20(c) The "2010 revenue base" for a statutory or home rule charter city is the sum of
6.21the city's certified property tax levy for taxes payable in 2010, plus the amount of local
6.22government aid under section 477A.013, subdivision 9, that the city was certified to
6.23receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that
6.24the city was certified to receive in 2010 including any amounts required to be placed in a
6.25special fund for distribution in a later year.
6.26    Subd. 2. 2010 reductions; counties, and cities. The commissioner of revenue
6.27must compute additional 2010 aid and credit reimbursement reduction amounts for each
6.28county and city under this section, after implementing any reduction of county program
6.29aid under section 477A.0124, local government aid under section 477A.013, or market
6.30value credit reimbursements under section 273.1384, to reflect the reduction of allotments
6.31under section 16A.152.
6.32The additional reduction amounts under this section are limited to the sum of the
6.33amount of county program aid under section 477A.0124, local government aid under
6.34section 477A.013, and market value credit reimbursements under section 273.1384
7.1payable to the county or city in 2010 before the reductions in this section, but after the
7.2reductions for unallotments.
7.3The reduction amount under this section is applied first to reduce the amount
7.4payable to the county or city in 2010 as market value credit reimbursements under section
7.5273.1384, and then if necessary, to reduce the amount payable as either county program
7.6aid under section 477A.0124 in the case of a county, or local government aid under section
7.7477A.013 in the case of a city.
7.8No aid or reimbursement amount is reduced to less than zero under this section.
7.9The additional 2010 aid reduction amount for a county is equal to 1.82767 percent
7.10of the county's 2010 revenue base. The additional 2010 aid reduction amount for a city
7.11is equal to the lesser of (1) 3.4075 percent of the city's 2010 revenue base or (2) $28
7.12multiplied by the city's 2008 population.
7.13EFFECTIVE DATE.This section is effective the day following final enactment.

7.14    Sec. 5. Minnesota Statutes 2008, section 477A.03, subdivision 2a, is amended to read:
7.15    Subd. 2a. Cities. For aids payable in 2009 2011 and thereafter, the total aid
7.16paid under section 477A.013, subdivision 9, is $526,148,487, subject to adjustment in
7.17subdivision 5 $520,725,315.
7.18EFFECTIVE DATE.This section is effective for aids payable in 2011 and
7.19thereafter.

7.20    Sec. 6. Minnesota Statutes 2008, section 477A.03, subdivision 2b, is amended to read:
7.21    Subd. 2b. Counties. (a) For aids payable in 2009 2011 and thereafter, the total aid
7.22payable under section 477A.0124, subdivision 3, is $111,500,000 minus one-half of the
7.23total aid amount determined under section 477A.0124, subdivision 5, paragraph (b),
7.24subject to adjustment in subdivision 5 $99,572,700. Each calendar year, $500,000 shall be
7.25retained by the commissioner of revenue to make reimbursements to the commissioner of
7.26management and budget for payments made under section 611.27. For calendar year 2004,
7.27the amount shall be in addition to the payments authorized under section 477A.0124,
7.28subdivision 1 . For calendar year 2005 and subsequent years, the amount shall be deducted
7.29from the appropriation under this paragraph. The reimbursements shall be to defray the
7.30additional costs associated with court-ordered counsel under section 611.27. Any retained
7.31amounts not used for reimbursement in a year shall be included in the next distribution
7.32of county need aid that is certified to the county auditors for the purpose of property tax
7.33reduction for the next taxes payable year.
8.1    (b) For aids payable in 2009 2011 and thereafter, the total aid under section
8.2477A.0124, subdivision 4 , is $116,132,923 minus one-half of the total aid amount
8.3determined under section 477A.0124, subdivision 5, paragraph (b), subject to adjustment
8.4in subdivision 5 $104,487,304. The commissioner of management and budget shall
8.5bill the commissioner of revenue for the cost of preparation of local impact notes as
8.6required by section 3.987, not to exceed $207,000 in fiscal year 2004 and thereafter.
8.7The commissioner of education shall bill the commissioner of revenue for the cost of
8.8preparation of local impact notes for school districts as required by section 3.987, not
8.9to exceed $7,000 in fiscal year 2004 and thereafter. The commissioner of revenue
8.10shall deduct the amounts billed under this paragraph from the appropriation under this
8.11paragraph. The amounts deducted are appropriated to the commissioner of management
8.12and budget and the commissioner of education for the preparation of local impact notes.
8.13EFFECTIVE DATE.This section is effective for aids payable in 2011 and
8.14thereafter.

8.15    Sec. 7. REPEALER.
8.16Minnesota Statutes 2008, section 477A.03, subdivision 5, is repealed.
8.17EFFECTIVE DATE.This section is effective for aids payable in 2011 and
8.18thereafter."
8.19Amend the title accordingly